Management Update

An executive summary of industry news

By Staff -- Logistics Management, 4/1/2007

DOT cross-border trucking pilot program stalls. An amendment approved by the Senate Appropriations Committee will refuse funding required to launch the Department of Transportation’s (DOT) cross-border trucking pilot program between the United States and Mexico. The amendment requires the pilot program to be subject to a transparent process requiring public comment, quantifiable measures of success, and safety enhancements. The amendment also prohibits Mexican trucks from gaining access to U.S. highways as part of this project until comparable and simultaneous access is granted to U.S. truckers. The pilot program was originally scheduled to begin in late April with 100 screened Mexican trucking companies allowed into the U.S.—but only to make international deliveries. And, later this year, U.S. carriers would’ve been allowed to enter Mexico under the same restrictions.
AASHTO takes a hard look at highways.A report from the American Association of State Highway and Transportation Officials (AASHTO) says that an increased investment in transportation is vital to keep the U.S competitive in the global economy and prevent a looming transportation infrastructure crisis. The report, Transportation—Invest in Our Future: Future Needs of the U.S. Surface Transportation, is the first of six being prepared by AASHTO to assist the National Surface Transportation Policy and Revenue Study Commission. The 90-page report examines the needs of the interstate highway system, rail and bus transit, and transportation demand in the coming years. It is available at www.transportation1.org/tif1report.
FMCSA not making the grade, says Public Citizen. The Federal Motor Carrier Safety Administration (FMCSA) received failing marks from non-profit, public advocacy group Public Citizen. The group says the FMCSA has not adequately regulated the trucking industry or protected U.S. highways and drivers. Joan Claybrook, Public Citizen president, blasted the FMCSA saying “the agency is incompetent in implementing the policies necessary to prevent the kinds of horrific truck crashes that occur all too often on America’s highways.” According to Public Citizen data, there were 5,830 large truck-related fatalities in the U.S. in 1999 when the FMCSA was created—in 2005, those fatalities had dipped to only 5,212. In what may have been her harshest comment, Claybrook said that the FMCSA has ignored its mandate to make safety its top priority, instead putting trucking interests first.
And the Port Person of the Year Award goes to …Martin Torrijos, President of Panama. The American Association of Port Authorities (AAPA), a trade organization representing public ports in the Western Hemisphere, selected President Torrijos based on his efforts to lead the $5.5 billion expansion of the Panama Canal, and to promote development of Panama’s seaports. Torrijos will receive the award at AAPA’s 2007 Annual Convention in Norfolk, Virginia in September.
House passes transit security bill. The Rail and Public Transportation Act of 2007, legislation designed to close the security gaps facing rail and mass transit, was passed by the House of Representatives. The bill was introduced by the House Committee on Homeland Security last month and focuses on training, grants, security planning, research and development, worker whistleblower protections, and hazardous materials transportation.
Houston (beep) we’re low on Tang. According to a recent report in Computerworld, NASA will begin tests this summer to see if current radio frequency identification (RFID) technology can perform in outer space. The agency says the tests are the first step to determining whether RFID chips can be used in a manned mission to Mars to monitor and manage inventory and track internal and external conditions. The magazine reports that NASA will send a variety of Gen 2 passive paper and plastic RFID tags, developed by Intermec, on the shuttle Endeavour that launches this July on a trip to the International Space Station. The tags will be stored in a case attached to the outside of the space station for a year to see how the technology stands up to extreme atmospheric conditions.
So, what’s the next big thing in logistics? Making data quality management a strategic initiative, according to a report by Adrian Gonzalez, director of ARC Advisory Group’s Logistics Executive Council. According to Gonzalez, when shippers and third-party logistics providers are asked what the most difficult or time-consuming part of their software implementation project is, they most commonly answer that it is collecting and cleaning data. For more on the findings, go to www.arcweb.com.
Eureka! Indian 3PL market may prove to a be goldmine. India’s third-party logistics (3PL) market is headed for a period of vast organic growth, says independent market analyst Datamonitor’s report, India Logistics Outlook 2007. The report predicts that outsourced logistics, over one-quarter of the $90 billion Indian logistics market, will grow at a compound annual growth rate of over 16 percent from 2007-2010. Because the Indian logistics industry is characterized by transporters with fleets smaller than five trucks, Indian companies are increasingly seeking and using 3PLs in order to reduce logistics costs. Realizing the potential, the report says 3PL service providers are expanding their services and increasing investments to become end-to-end integrated players in the Indian market.
Transportation and logistics companies receive mainstream recognition. Several freight transportation and logistics providers were recognized as some of America’s most admired companies by Fortune magazine last month. Selections were based on various attributes, including innovation, employee talent, and quality of products and services, among others. FedEx ranked sixth and UPS ranked sixteenth in the top 20 companies, while Con-way ranked first in the transportation and logistics category and YRC Worldwide (parent of Yellow Transportation, Roadway Express, USF, and other motor carriers) and Union Pacific led the way for the trucking and railroad categories.
It’s never too early to get into supply chain management. Skills for Logistics, a U.K.-based concern that is part of the country’s Sector Skills Council, will kick off a three-month educational program for 14-to-16 year olds beginning this fall. The program aims to educate adolescents on the supply chain, transportation, and logistics. The organization is currently developing logistics software that will focus on how iPods manufactured in China are subsequently distributed to England.
Ferreting out logistics excellence. Here’s proof that the average consumer sees logistics as an important selling point: The FerretStore.com, which bills itself as “The oldest and most respected name in ferret supplies on the Internet,” entices potential customers by touting its logistics expertise. The company’s ads promise 24-hour turnaround on 98 percent of all orders as well as real-time inventory and order tracking. Kind of gives you a warm, fuzzy feeling, doesn’t it?
2007 Logistics Technology Roundtable: Live in May! Join Chief Editor Michael Levans and four top analysts for a special webcast on the latest and greatest in logistics and supply chain technology. Hear about the most recent developments in TMS, WMS, and global trade management (GTM), and learn how to get the best value out of these solutions. Watch www.logisticsmgmt.com for more details.